Walmart Inc (WMT)

Cash conversion cycle

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Days of inventory on hand (DOH)	days	40.25	40.88	44.53	48.08	39.03
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—
Cash conversion cycle	days	40.25	40.88	44.53	48.08	39.03

January 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 40.25 + — – —
= 40.25

1. The cash conversion cycle for Walmart Inc has shown some fluctuations over the past five years.
2. As of January 31, 2021, the cash conversion cycle was 39.03 days, indicating that Walmart was efficiently managing its cash flows from operations to sales and then back to cash.
3. However, by January 31, 2022, the cash conversion cycle extended to 48.08 days, reflecting a delay in converting sales into cash and possibly indicating issues with inventory management or collection of receivables.
4. Over the following years, Walmart managed to reduce the cash conversion cycle to 44.53 days by January 31, 2023, and further to 40.88 days by January 31, 2024, showing improvements in cash flow efficiency.
5. The trend continued as of January 31, 2025, with the cash conversion cycle at 40.25 days, demonstrating Walmart's ability to streamline its working capital management.
6. Overall, Walmart's cash conversion cycle analysis suggests a focus on optimizing operational processes to enhance cash flow efficiency and effectively manage working capital in the business.